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Healthcare construction primed to rebound faster than other sectors

While nonresidential construction is expected to continue to lag through much of 2021, healthcare is projected to fare better than other sectors like office and manufacturing, according to a new report.

Nonresidential building construction starts were down 24% in 2020 compared to 2019, which is expected to drag overall construction spending in 2021, according to a new report from commercial real estate firm JLL that projects a 5% to 8% spending dip this year. While many long-term healthcare capital projects were put on hold last year, JLL expects those to resume by the end of the year.

“We’re forecasting by the end of the year that healthcare companies will reopen their capital budgets for long-term plans rather than just the short-term triage plans we saw in 2020,” said Henry D’Esposito, a senior research analyst for JLL. “We’re ranking healthcare as one of the stronger sectors going into this year.”


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Moves For Abs, Toning, And More

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